Adani Power Limited , India's largest private thermal power producer, has received shareholder approval for a 5-for-1 stock split, as the company reports robust financial results.

Stock Split Approval

In a postal ballot concluded on September 4, Adani Power shareholders overwhelmingly approved a sub-division of the company's equity shares. Each existing share with a face value of ₹10 will be split into five shares with a face value of ₹2 each. The move aims to enhance liquidity and make the shares more accessible to retail investors.

The company's authorized share capital will remain unchanged at ₹28,000 crore, but will now be divided into 12,400 crore equity shares of ₹2 each, along with various classes of preference shares.

Strong Financial Performance

Adani Power reported:

• Revenue from operations of ₹56,203.00 crore
• EBITDA of ₹24,008.00 crore
• EBITDA margin of 41.00%
• Profit After Tax (PAT) of ₹12,750.00 crore

Operational Highlights

• Current operating capacity of 18,150 MW
• Plant availability factor of 91.00%
• 88.00% of capacity tied up under long-term Power Purchase Agreements (PPAs)

Expansion Plans

Adani Power outlined ambitious growth targets in its investor presentation:

• Locked-in capacity expansion of 23,720 MW across 13 projects by FY32
• Target capacity of 41,870 MW
• 7,720 MW of new PPAs already secured

Financial Position

The company reported a strong financial position:

• Net debt to EBITDA ratio improved to 1.44x from 9.75x in FY19
• Return on Equity (RoE) of 25.00%
• ₹7,311.00 crore in cash and cash equivalents

Future Outlook

Adani Power is positioning itself to meet India's growing baseload power demand, with plans to add about 30.00% of the 80 GW additional coal-based capacity required by FY32. The company's expansion strategy focuses on brownfield projects and secured equipment orders to ensure timely execution.

With its strong operational performance, expanding capacity, and improved financial metrics, Adani Power appears well-positioned to capitalize on India's growing energy needs and maintain its leadership in the private thermal power sector.

Adani Power Limited , a key player in India's energy sector, has received shareholder approval for a significant corporate action aimed at improving stock liquidity and accessibility. The company announced that its shareholders have given the green light to a 1:5 stock split through a postal ballot resolution.

Stock Split Details

The approved stock split will subdivide each existing equity share with a face value of Rs 10.00 into five shares with a face value of Rs 2.00 each. This move is expected to make the shares more affordable for retail investors and potentially increase market participation.

Capital Structure Changes

Following the stock split, Adani Power's authorized share capital will remain unchanged at Rs 28,000.00 crore. However, the composition will be altered as follows:

Shareholder Approval Process

The company conducted the approval process through a postal ballot, with e-voting facilities provided to shareholders. The results showed overwhelming support for the stock split:

• 99.9993% of the total votes were cast in favor of the stock split resolution.
• Only 0.0007% of the votes were against the proposal.

Memorandum of Association Amendment

Alongside the stock split, shareholders also approved the alteration of the Capital Clause in the company's Memorandum of Association to reflect the new share structure. This resolution also received strong support, with 99.9986% of votes in favor.

Management's Rationale

Adani Power's management stated that the primary objective of the stock split is to enhance liquidity in the company's shares and encourage wider participation from retail investors. By making the shares more affordable, the company aims to broaden its shareholder base.

Next Steps

While the stock split has been approved, the record date for its implementation has not yet been announced. The company has stated that this date will be communicated separately, which will determine when the split takes effect for existing shareholders.

Investors and market participants will be keenly watching for the announcement of the record date and the subsequent impact on Adani Power's stock price and trading volumes in the coming weeks.